Senate President Robert Stivers, R-Manchester, declared the issue dead about 11:30 p.m. He said there needs to be a better plan for the 2015 session.

Sen. Tom Buford, R-Nicholasville, said the project's supporters had multiple chances to present a funding plan that answered senators' questions. "It never balanced out," he said.

After the legislative session ended, Beshear's office released a statement saying that "we will continue to seek ways to bring this project to fruition."

"Rupp Arena, the convention center, Lexington and the surrounding region need this overdue renovation and improvement to attract the conventions and investment that modern facilities bring to city centers," he said.

Beshear said Tuesday that he hadn't considered whether to call a special session to reconsider the project, something House Speaker Greg Stumbo, D-Prestonsburg, discouraged.

Beshear said he thought the House would approve the plan to renovate the 38-year-old home of the University of Kentucky men's basketball team, but he was still trying to get Senate support.

The proposal that was discussed late Tuesday included $80 million in state-backed bonding for the project and $40 million in bonding contributed by the city.

The $310 million renovation of Rupp Arena, which opened in 1976, is to feature luxury boxes and sweeping vistas of the city.

Beshear proposed Rupp bonding in his budget, which the House approved at $65 million. But the Senate stripped the project of all but $1.5 million, saying there were too many questions about the project, including UK's role.

Gray has said the Rupp renovation is key to a planned downtown entertainment district. Beshear has argued Rupp, which still has bleacher seating in the upper tier, badly needs an upgrade.

Reporter Gregory A. Hall can be reached at (502) 582-4087. Follow him on Twitter at @gregoryahall.